Sept. 17 (UPI) -- The Nasdaq Composite fell into correction territory on Thursday as tech stocks fell, led by Snowflake on the heels of its Wall Street debut.
The Nasdaq fell 1.27% to 10,910.28, down 10% from its previous high after setting multiple record highs behind a previous tech boom. The S&P 500 also fell 0.84%, while the Dow Jones Industrial Average closed the day down 130.40 points or 0.47%.
Snowflake stock fell 10.39% on Thursday one day after shares more than doubled, closing the day down the day at $253.93, raising about $3.4 billion and selling some 28 million shares in the largest software IPO in history.
Facebook stock declined 3.3%, Netflix fell 2.82%, Amazon declined 2.25%, Alphabet dropped 1.66%, Apple slid 1.6% and Microsoft ended the day with losses of 1.04%.
The Nasdaq and S&P 500 had both soared to record highs in August powered by rising tech stocks, but many of those stocks have begun to falter in recent weeks.
"The market had gone up too much, too fast and valuations got to a point where that was more noticeable than before," Tom Martin, senior portfolio manager at GLOBALT, told CNBC. "So now you're seeing the market correct a bit."
Markets also responded to ongoing negotiations over an economic stimulus bill related to the COVID-19 pandemic after President Donald Trump on Wednesday encouraged Republicans to compromise with Democrats and accept "much higher numbers" on a deal.